Celltrion Holdings, the holding company of the Celltrion Group, announced on the 8th that it will proceed with an additional stock acquisition worth 125 billion won.
The company plans to buy back shares through open market purchases from the 10th of next month until November 7th. Previously, it acquired approximately 262 billion won worth of Celltrion stocks from the 7th of last month to the 5th of this month.
This acquisition is a measure taken following the company's announcement in July to proceed with the purchase of Celltrion stocks worth 500 billion won. The strategy aims to improve revenue and enhance the value of its subsidiaries.
Celltrion Holdings aims to improve profitability through expected increases in dividends from acquiring additional equity in Celltrion and will work to enhance shareholder value, which is severely undervalued compared to its intrinsic value. In April, the company also acquired shares worth 124 billion won after announcing a stock acquisition plan worth 100 billion won.
Celltrion Holdings noted that it is considering additional funding to enhance subsidiary shareholder value if the market undervaluation continues. It had previously secured new funding worth 1 trillion won.
The company plans to sell the newly acquired shares to increase liquidity if it determines that the undervaluation of Celltrion's corporate value has eased and external uncertainties have been resolved. The sale will be conducted in a manner that minimizes market burden, and the company explained that it will not sell existing shares held by the Holdings other than the newly acquired shares.
At that time, the company plans to accelerate the restructuring of the holding company's business structure. The company also revealed that it is exploring ways to transition from a pure holding company to an operating holding company, including mergers and acquisitions (M&A) with high-value domestic and foreign corporations.
A group official said, "We are continuing efforts to maximize profitability and management efficiency in line with the roadmap for the holding company's transition to an operating holding company, and we believe that this acquisition of subsidiary stocks will secure the growth momentum for the holding company and lead to the group's stable growth."